Bank of America (BAC) Sues Las Vegas World Market Center over loans

Bank of America (NYSE:BAC) has sued the the World Market Center in downtown Las Vegas on behold of investors in the property's mortgages, being a trustee for investors in the venture.

Bank of America claims two phases of the property have been in default on their loans since May 2010 and that after a forbearance was granted, the World Market Center failed to make timely loan payments as required after Oct. 1.

In both lawsuits, the bank asks the court to appoint a receiver to run the property's phases backing the loans and to collect rents. The suits say the receiver could run the properties until they're sold or foreclosed on.

World Market Center attorneys have not yet responded in court to the lawsuits, but the company said in a statement Thursday: "Our goal remains consistent; to preserve and enhance the long-term viability of World Market Center and position it for the future. We will continue to work closely with ownership and our lenders to advance that objective."

The center's monthly debt service obligation under one loan is $1.422 million and is $1.825 million for the second loan, the lawsuits say.




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